Top 5 Mutual Funds in India for High Returns in 2025

Investors often look for low-risk, high-paying investments. Finding a credible source for the same is quite impossible, especially when you scroll reels and the internet and find people suggesting you differently. It’s hard to believe one source.

Worry not! It’s not you in confusion, but reading out the crucial information below will help clear the shady clouds in your thoughts. Find the best-paying mutual funds with captivating returns below to invest in 2025.

Small-cap and Mid-cap Equity Funds

Hold Quant and Bandhan for small-cap and draw exclusive returns with almost 43.9% CAGR in a 3- or 5-year period. Motilal Oswal is another option for Midcap to draw a handsome return.

Tip: People who can bear high risk can go for it and it’s for a 3 or 5-year window.

Large and Flexi-cap Funds

ICICI Prudential Bharat 22, Kotak Bluechip, and Nippon India Large can bring you up to 35% CAGR. HDFC and Franklin Templeton can be in your portfolio.

Tip: They draw incredible returns and are less volatile than small and midcap.

Sectoral or Thematic Funds

ICICI Prudential Infrastructure delivered 39% p.a. The Motilal Oswal Nifty India Defence ETF launched recently and scored 35%+ returns in six months.

Tip: Be sure you have guts or plan on investing in specific sectors.

Hybrid and Multi-asset Funds

Stocks or mutual funds, they could be any, but the uncertainty remains at large. Here comes the recommendation for hybrid and multi-asset funds, even from experts like Viraj Gandhi.

Tip: Debt and Gold can balance your returns and keep your investments safe, offering a balanced ride.

Long-duration Funds – Debt or GILT ones

They may offer two times more return than your investments, but the person must hold them for long. That’s quite a problem but worth it.

Tip: Invest in these funds if you demand manageable risk options with high returns.

FAQs

What is a mutual fund?

Many people pool their money for investment and it is guided by a professional fund manager. They invest in various things like stocks, assets, securities, and so on. People don’t pick stocks individually here.

Why do you think these funds will stand out the best?

The points that we discussed above have always outnumbered the expectations of investors. They often do well.

The second thing is they have support because of the growing infrastructure.

It’s experts and experienced professionals, so more chances of profits.

Debt or Gold, is always low-risk and balanced.